IRIS Accounts Production v23.3.1.45 11973450 Board of Directors 1.6.22 31.5.23 31.5.23 9/2/2024 false true false false false true false Auditors Opinion iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh119734502022-05-31119734502023-05-31119734502022-06-012023-05-31119734502021-05-31119734502021-06-012022-05-31119734502022-05-3111973450ns10:Originalns15:EnglandWales2022-06-012023-05-3111973450ns14:PoundSterlingns10:Original2022-06-012023-05-3111973450ns10:Originalns10:Director12022-06-012023-05-3111973450ns10:Original2022-06-012023-05-3111973450ns10:Original2023-05-3111973450ns10:Originalns10:PrivateLimitedCompanyLtd2022-06-012023-05-3111973450ns10:Originalns10:SmallEntities2022-06-012023-05-3111973450ns10:Originalns10:Audited2022-06-012023-05-3111973450ns10:Originalns10:SmallCompaniesRegimeForDirectorsReport2022-06-012023-05-3111973450ns10:SmallCompaniesRegimeForAccountsns10:Original2022-06-012023-05-3111973450ns10:Originalns10:FullAccounts2022-06-012023-05-3111973450ns10:Original12022-06-012023-05-3111973450ns10:Originalns10:Director22022-06-012023-05-3111973450ns10:Originalns10:RegisteredOffice2022-06-012023-05-3111973450ns10:Original2022-05-3111973450ns10:Originalns5:CurrentFinancialInstruments2023-05-3111973450ns10:Originalns5:CurrentFinancialInstruments2022-05-3111973450ns10:Originalns5:Non-currentFinancialInstruments2023-05-3111973450ns10:Originalns5:Non-currentFinancialInstruments2022-05-3111973450ns5:ShareCapitalns10:Original2023-05-3111973450ns5:ShareCapitalns10:Original2022-05-3111973450ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-05-3111973450ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-05-3111973450ns5:IntangibleAssetsOtherThanGoodwillns10:Original2022-06-012023-05-3111973450ns10:Originalns5:FurnitureFittings2022-06-012023-05-3111973450ns10:Original2021-06-012022-05-3111973450ns10:Originalns5:PatentsTrademarksLicencesConcessionsSimilar2022-05-3111973450ns10:Originalns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-05-3111973450ns10:Original2022-05-3111973450ns10:Originalns5:PatentsTrademarksLicencesConcessionsSimilar2022-06-012023-05-3111973450ns10:Originalns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-06-012023-05-3111973450ns10:Originalns5:PatentsTrademarksLicencesConcessionsSimilar2023-05-3111973450ns10:Originalns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-05-3111973450ns10:Originalns5:PatentsTrademarksLicencesConcessionsSimilar2022-05-3111973450ns10:Originalns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-05-3111973450ns10:Originalns5:FurnitureFittings2022-05-3111973450ns10:Originalns5:FurnitureFittings2023-05-3111973450ns10:Originalns5:FurnitureFittings2022-05-3111973450ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3111973450ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-05-3111973450ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-05-3111973450ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-05-3111973450ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-05-3111973450ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-05-3111973450ns5:Securedns10:Original2023-05-3111973450ns5:Securedns10:Original2022-05-31
REGISTERED NUMBER: 11973450 (England and Wales)








FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

FOR

HATCH DIGITAL SKILLS LTD

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


HATCH DIGITAL SKILLS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2023







DIRECTORS: G Ferro
A G Metcalfe





REGISTERED OFFICE: 167-169 Great Portland Street
Fifth Floor
London
W1W5PF





REGISTERED NUMBER: 11973450 (England and Wales)





AUDITORS: Carter & Coley Limited
Chartered Accountants and Statutory Auditor
3 Durrant Road
Bournemouth
Dorset
BH2 6NE

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

BALANCE SHEET
31 MAY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 43,333 110,000
Tangible assets 5 2,368 2,179
45,701 112,179

CURRENT ASSETS
Debtors 6 114,599 35,346
Cash at bank 40,013 21,627
154,612 56,973
CREDITORS
Amounts falling due within one year 7 2,396,334 1,696,403
NET CURRENT LIABILITIES (2,241,722 ) (1,639,430 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(2,196,021

)

(1,527,251

)

CREDITORS
Amounts falling due after more than one
year

8

(19,617

)

(30,512

)

PROVISIONS FOR LIABILITIES 10 (629,386 ) -
NET LIABILITIES (2,845,024 ) (1,557,763 )

CAPITAL AND RESERVES
Called up share capital 785,000 785,000
Retained earnings (3,630,024 ) (2,342,763 )
(2,845,024 ) (1,557,763 )

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

BALANCE SHEET - continued
31 MAY 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 9 February 2024 and were signed on its behalf by:





A G Metcalfe - Director


HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023


1. STATUTORY INFORMATION

Hatch Digital Skills Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on a going concern basis as the directors and investors have indicated that they will continue to support the business with sufficient funds to cover the ongoing cashflow needs for a period of at least 12 months from the date of approving these financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less and accumulated amortisation and any accumulated impairment losses.

Branding is being amortised over its estimated useful life of three years.

Software development is being amortised over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 33% on cost


HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 11 (2022 - 8 ) .

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


4. INTANGIBLE FIXED ASSETS
Software
Branding development Totals
£    £    £   
COST
At 1 June 2022
and 31 May 2023 2,500 310,000 312,500
AMORTISATION
At 1 June 2022 208 202,292 202,500
Amortisation for year 834 65,833 66,667
At 31 May 2023 1,042 268,125 269,167
NET BOOK VALUE
At 31 May 2023 1,458 41,875 43,333
At 31 May 2022 2,292 107,708 110,000

5. TANGIBLE FIXED ASSETS
Fixtures
and
fittings
£   
COST
At 1 June 2022 7,042
Additions 2,141
At 31 May 2023 9,183
DEPRECIATION
At 1 June 2022 4,863
Charge for year 1,952
At 31 May 2023 6,815
NET BOOK VALUE
At 31 May 2023 2,368
At 31 May 2022 2,179

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 77,046 26,280
Other debtors 2,662 791
Prepayments and accrued income 34,891 8,275
114,599 35,346

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 9,973 9,727
Trade creditors 152,354 74,472
Amounts owed to group undertakings 2,086,193 1,568,898
Social security and other taxes 65,416 -
VAT 11,433 9,201
Pension payable 2,015 1,959
Accruals and deferred income 68,950 32,146
2,396,334 1,696,403

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Bank loans - 1-2 years 10,225 9,973
Bank loans - 2-5 years 9,392 20,539
19,617 30,512

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 29,590 40,239

The bank loan is secured by a fixed and floating charge over the assets of the company.

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions 629,386 -

The company has given a guarantee to a funding provider in respect of loans to a fellow subsidiary. The amount due on these loans by the fellow subsidiary to the funding provider as at 31 May 2023 amounted to £629,386.

The fellow subsidiary entered into administration on 17 November 2022 and it is probable that this guarantee will be called upon.

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Andrew A Clark FCA (Senior Statutory Auditor)
for and on behalf of Carter & Coley Limited

12. ULTIMATE PARENT COMPANY

The company's ultimate parent company is Route2Work Limited, incorporated in England & Wales with company number 10299571.

13. SHARE-BASED PAYMENT TRANSACTIONS

On 1 June 2021 the company's parent company granted 70,500 share options under an Enterprise Management Incentive scheme at a weighted average exercise price of 0.01p per share.

During the current year, 14,604 options were forfeited (2022 - Nil). At 31 May 2023, none of the options had been exercised, with 55,896 options remaining outstanding. No amounts have been reflected in the accounts on the basis that any adjustment would not be material.

On 1 June 2021 the company's parent company granted 25,641 share options under an Unapproved scheme at a weighted average exercise price of 0.01p per share.

During the current year, 7,711 options were forfeited (2022 - Nil). At 31 May 2023, 3,830 of the options had been exercised, with 14,100 options remaining outstanding. No amounts have been reflected in the financial statements on the basis that any adjustment would not be material.